Keeta's rise in Hong Kong: How a Chinese delivery app upended the city's food market

Keeta's rise in Hong Kong (Image: NYT)

Keeta, the Chinese food delivery giant Meituan's Hong Kong arm, took over the city's food delivery business in two years. Operating as a launchpad for expansion abroad, the company offered free deliveries and heavy discounts. The strategy worked: Keeta now controls nearly half of the city's delivery market, pushing out former leader Deliveroo, the New York Times reported.

Foot soldiers and rapid growth

Keeta's delivery staff includes the likes of Wong Ting, 50-year-old walking courier who logs 40,000 steps per shift. Unlike some other apps that rely mainly on motorbikes, Keeta divides workers between "infantry" and "cavalry," with flexibility—but tough conditions to the extreme. Pay bonuses have decreased over the years, prompting some riders to stage a strike to increase wages and contracts.

What drove Deliveroo out

Keeta flooded the market with promotions, from $40 sign-up credits to free peak-hour deliveries. The tactics undercut competitors like Foodpanda and Deliveroo. As Keeta's market share grew to nearly 50%, Deliveroo—holding 60%—withdrew. Restaurant owners complain Keeta's commission fees are high, but the volume of unsold orders keeps them hooked.

Worker discontent follows aggressive growth

Delivery workers struck in May, demanding higher base pay and better working conditions. Stricter delivery time targets were blamed by some for inducing dangerous practices like running red lights. Keeta says its system promotes speed and flexibility, but critics argue the app cares more about expansion than employee well-being. One industry has called for government regulation to prevent exploitation.

Hong Kong as Meituan's testing ground

Hong Kong's international surroundings, combined with exposure to the regulations, made it the ideal test market for Meituan. The app has now expanded to Saudi Arabia and will roll into Brazil with a $1 billion investment. Analysts say Hong Kong's dual Chinese and international nature made the city the ideal portal to international domination.

A flashpoint for local frustration

Keeta's rapid popularity has also fueled political resentment. To some Hong Kongers, the app's success represents the increasing Chinese control over the city. After Deliveroo's exit, social media was flooded with complaints about growing mainland influence. Yet, for such workers as Chinese university student Xie Long, the platform is a means of survival in an era of rising living costs.

Keeta's tale in Hong Kong is only beginning—but its ascent demonstrates how a well-financed, determined participant can totally recreate a market in a matter of quarters, either positively or negatively.